Research On The Profitability Of Shenyang Chemical Industry Based On DuPont Analysis System

With the continuous development of China's national economy,the proportion of the chemical industry is also increasing.The development speed and scale of the chemical industry directly affect all areas of China's social economy,and it has made important contributions to promoting China's economic development and alleviating the pressure of employment in the market.In the past,more attention was paid to the energy strategy of the chemical industry,but for the chemical industry,the state has paid more and more attention to the performance of chemical companies.The core element of the accounting information of listed companies is the profitability information,and the creditors,managers and investors of the company pay close attention to this information.Whether a company can achieve strategic goals by its own strength and stand firm in the industry depends on the level of profitability.The research on profitability plays a very important role in the research on corporate performance.In this paper,a listed company,Shenzhen Chemical Industry Co.,Ltd,was selected to investigate the main indicators,stability and durability of the company's profitability based on the annual report data of Shenzhen Chemical Industry Co.,LTD from 2015 to 2019 by means of literature research,investigation method and serial substitution method.Based on the Du Pont analysis system,in-depth analysis was carried out on Shenyang Chemical,and the core index of return on equity was divided into equity multiplier,net profit rate on sales and turnover of total assets layer by layer.The above Du Pont analysis indexes were combined by vertical and horizontal comparative analysis.In longitudinal comparative analysis with serial substitution method and investigation method and other methods to analyze its influencing factors,found in shenyang chemical industry profitability is poor stability and durability,profit cost is larger,inventory backlog of weakening profitability and profitability negative impact by the accounts receivable status,rights and profit risk problem.Actual situation combined with Shenyang Chemical Industry Co.,Ltd found the causes of problems with the following aspects,the company's business core competitiveness,market share is small,the purchase cost increase,the lack of cost control,goods storage sales management is not perfect,the lack of effective accounts receivable credit management department,excessive reliance on debt and capital structure.According to the problems and reasons,finally put forward the Shenyang Chemical Industry Co.,Ltd and reasonable ways to improve profitability and countermeasures,including core competitiveness,expand market share,strengthen cost control,improve the level of enterprise inventory management,improve the level of accounts receivable management,optimize capital structure,do this can make the enterprise profit ability reach new heights.According to the corresponding profit problems,reasonable and targeted countermeasures are put forward to help Shenyang Chemical Industry Co.,Ltd to improve its profitability,which is not only helpful for creditors of Shenyang Chemical to check whether the funds held by investors are safe,but also helpful for investors' rights and interests of Shenyang Chemical to be guaranteed.In addition,other enterprises in the chemical industry can also,according to their own actual development needs,appropriately refer to relevant suggestions and countermeasures,improve the competitiveness and development level of the chemical industry,constantly improve the industry and enterprise internal stable and sustainable management level,promote all economic levels,improve the industry profit.